Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred.

Prepare a trial balance on April 30, 2020.

On December 31, 2020, Crane Corporation had the following shareholders’ equity accounts:

CRANE CORPORATION
Balance Sheet (partial)
December 31, 2020
Shareholders’ equity
     Common shares (unlimited number of shares authorized, 92,000 issued) $1,033,000
     Retained earnings 520,000
Total shareholders’ equity
$1,553,000

During the year, the following transactions occurred:

Jan. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15.
July 1 Announced a 2-for-1 stock split. The market price per share on the date of the announcement was $18.
Dec. 15 Declared a 10% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $9; on December 30, $12; and on January 15, $11.
31 Determined that profit before income tax for the year was $456,000. The company has a 30% income tax rate.

part
(a)
Journalize the transactions and closing entries for 2021

On January 1, 2018 The Village of Port Jefferson engaged to Frog Construction company to construct a municipal office complex. The three-year a to receive 10 million in cash payments from the city in three installments: 25% when the project was 30% complete; 25% when the project was 60% complete; and50% when the project was fully complete. The contract required that Frog's completion estimates be certified by an independent consultant before payments were made.

During the first year of the contract, Frog completed 30% of the contract and incurred costs of 2,490,000. During the second year, the project was certified as being 60% complete and Frog incurred costs of 3,100,000.
During the third year, Frog completed the project and incurred costs of 3,110,000.

Assuming Frog had no other revenues or expenses, determine the profit on construction for 2018, 2019, and 2020 under the following methods:

1. Percentage of Completion'

2. Completed Contract

3. Which method best represents the profitability of Frog from 2018 to 2020.

Pronghorn Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $43,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 7%; Pronghorn’s incremental borrowing rate is 9%. Pronghorn is unaware of the rate being used by the lessor. At the end of the lease, Pronghorn has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Pronghorn uses the straight-line method of depreciation on similar owned equipment

- Prepare the journal entries, that Pronghorn should record on December 31, 2020

- Prepare the journal entries, that Pronghorn should record on December 31, 2021

- Prepare the journal entries, that Pronghorn should record on December 31, 2022.

- What amounts would appear on Pronghorn’s December 31, 2022, balance sheet relative to the lease arrangement?

Based on the following transactions, calculate the revenues, expenses, and net income that would be reported on (a) the cash basis and (b) the accrual basis:

• i. Inventory costing $70,000 was purchased on account.
• ii. Inventory costing $60,000 was sold for $100,000. Eighty percent of the sales were for cash.
• iii. Cash collected from credit customers (those who bought on account) totalled $20,000.
• iv. A lease was signed at the beginning of the year, requiring monthly payments of $1,000. The rent for the first month was paid when the lease was signed. After that, the $1,000 rent was paid on the last day of each month, to cover the following month.
• v. Supplies costing $5,500 were purchased for cash. At the end of the year, $500 of the supplies were still unused.
• vi. Wages of $37,500 were paid during the year. Also, wages of $500 remained unpaid at year end.

2. The company declared dividends of $7,000 on December 15, 2020, to be paid on January 15, 2021. Does this transaction affect Cash in 2020? How should it be recorded?

Exercise 18-23

At the end of 2016, Concord Corporation reported a deferred tax liability of $43,000. At the end of 2017, the company had $245,000 of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and equipment has been lower than the CCA claimed on Concord’s income tax returns. The resulting future taxable amounts are as follows:

The tax rates enacted as of the beginning of 2016 are as follows: 32% for 2016 and 2017; 31% for 2018 and 2019; and 26% for 2020 and later. Taxable income is expected in all future years.

Calculate the deferred tax account balance at December 31, 2017.

Prepare the journal entry for Concord to record deferred taxes for 2017.

Early in 2018, after the 2017 financial statements were released, new tax rates were enacted as follows: 30% for 2018 and 28% for 2019 and later.
Prepare the journal entry for Concord to recognize the change in tax rates.

much more frequently than this (that is OK and encouraged). After posting, make sure to return several more times to the discussion to read more new posts and respond where appropriate.

Post # 1: Write a short, well-written paragraph (maximum 5-8 sentences) that responds to this question:

Please consult the chapter on International Trade in your textbook to review and learn about the comparative advantage, specialization based on comparative advantage, benefits of trade, trade barriers such as tariffs and quotas, economic effects of trade barriers on the tariff-imposing home country such as on home prices, home consumers, home producers, government revenue collection, deadweight loss, among others. These trade barriers would benefit some groups and hurt some groups.

As you probably are aware that the U.S. has recently initiated a trade-war with China, the other major economy in the world by raising tariffs on many imports coming from China. China has retaliated against the U.S. by raising some tariffs against U.S. goods going to China. Simultaneously, there are high-level negotiations between the U.S. and China to resolve the accusations and concerns raised by the U.S. against China such as unfair trade practices, currency manipulation to gain unfair trade advantages, and forced transfer or theft of intellectual properties from U.S. Companies, among others. The talks are not progressing as expected or desired. Given this situation and considering the U.S. perspective, do you agree or disagree with these U.S. accusations against China? If so, why? If not, why not? Further, what will be possible impact of the tariffs imposed by the U.S. the U.S. economy, on domestic prices, domestic consumers, domestic producers, government tax revenue collection, which of the above groups will benefit, and which group(s) will be hurt? Focusing on any one or two of the above questions or focusing on one or two groups, explain who would be the gainers or losers and how? Compose a well-written paragraph to explain your answer with logic and examples as appropriate. Then post this paragraph in a thread under Discussion#2 in the BB Discussion Board area.

Post # 2 (or more): Read all of the responses posted by your classmates and choose the one (or more) you would like to respond to. When responding to peers, you are expected to do the following: ask a question that prompts deep thinking, play devil's advocate, refer to course videos/required readings to support points, or share ideas/resources to extend the thinking of peers. It is not sufficient to say, “That’s a great idea!” or "I agree." Your posts must be substantive add something new to the discussion.

Please answer the following question in two or three paragraphs (200+ words). The case study that relates to the question is listed below. This is for a public relations class. Thank you!

1.) Why do you think Berger says it is important to have a social media strategy before a crisis hits in order to have any credibility?

Case Study – General Motors Goes Social with a Financial Crisis:

General Motors used social media to help handle its bankruptcy financial crisis in May 2009. Despite hesitation from the legal and financial consultants advising GM, Christopher Berger convinced the CEO to use Twitter and Facebook to let shareholders know of the chapter 11 filing. Berger, director of global social media at GM, said that getting CEO Fritz Henderson on board with the idea was crucial. GM following a 20/80 policy on its social media posts – 20 percent was GM material posted to Facebook or Twitter or other places and 80 percent was responding to questions. “Even if they were venting and saying, ‘We hate you,’ we tried to respond,” Berger said. “During a crisis, you want to use social media as a tool to respond and make sure that consumers realized you are listening and you care.”

GM employed such social media tactics as posting blogs and live webcasts, playing a video interview on Facebook with Fritz Henderson, and putting the CEO on Twitter for an open conversation. “You cannot overcommunication during a crisis,” Berger said. “Go on every platform, every possible place somebody might be listening to you. The audience expects you to be there.”

During the first week of the crisis, GM engaged in direct conversations via Twitter, Facebook, and through various blogs with about 800 individual people. Berger noted that those 800 conversations were translated into communication with thousands more because followers to those sites would see the conversations. “Again, it’s not ‘Here’s GM’s message; here’s what they want us to know.’ It is real people interacting,” Berger added. “That was a particular benefit for us.”

In one particular effective strategy, GM even sought to engage its critics. GM invited a popular blogger and frequent GM critic, David Meerman Scott, to headquarters and gave him access to the CEO and anyone else he wanted to talk to. Within a week of the visit, Scott had posted four blogs about GM to his blog, Web Ink Now. Scott’s post were still critical of GM’s advertising strategy (something he had been critical of the motor company for previously), but were positive about the corporation overall. “You don’t engage everybody,” Berger noted, adding that critics not interested in a genuine conversation are not worth the time. “If somebody is giving good thought to their criticism, then you want to engage that person.”

To have an effective and credible social media presence during a crisis, it is important to establish a social media strategy before the crisis hits, Berger maintains. “There is no over. This is not a campaign. It is a commitment. This is a long-term way of doing business.”